BILL NUMBER: SB 128	CHAPTERED  09/27/00

	CHAPTER   763
	FILED WITH SECRETARY OF STATE   SEPTEMBER 27, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 26, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 31, 2000
	AMENDED IN ASSEMBLY   AUGUST 29, 2000
	AMENDED IN ASSEMBLY   JUNE 29, 2000
	AMENDED IN ASSEMBLY   AUGUST 24, 1999
	AMENDED IN SENATE   MAY 19, 1999
	AMENDED IN SENATE   APRIL 26, 1999
	AMENDED IN SENATE   MARCH 4, 1999

INTRODUCED BY   Senator Polanco
   (Coauthor:  Assembly Member Migden)

                        DECEMBER 22, 1998

   An act to amend Section 4420 of the Government Code, relating to
state property.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 128, Polanco.   State property.
   (1) Existing law authorizes the Director of General Services, with
the consent of the state agency concerned, to sell, convey, or
exchange surplus real property belonging to the state at fair market
value under specified circumstances.
   This bill would authorize the director, with approval of the
Director of the Department of Transportation, to sell, lease, or
exchange the real property located at 120 South Spring Street in the
City of Los Angeles, including structures thereon totaling
approximately 395,000 square feet.
   (2) Existing law prohibits a state or local government agency, in
connection with competitive bidding for a public building or
construction contract, from requiring a bidder to obtain a surety
bond or insurance in connection with the project from a particular
surety or insurance company, agent, or broker, and authorizes use of
owner-controlled or wrap-up insurance on a "construction or
renovation project" for which the total cost exceeds $50,000,000 if
the agency meets certain conditions and certifies that it has made
certain determinations.
   This bill would clarify that law by authorizing owner-controlled
or wrap-up insurance for a construction or renovation program, rather
than project, for which the costs exceed $50,000,000.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Director of General Services, with approval of the
Director of the Department of Transportation, may sell, lease, or
exchange the real property located at 120 South Spring Street in the
City of Los Angeles, including structures thereon totaling
approximately 395,000 square feet, on those terms and conditions and
subject to the reservations and exceptions that may be in the best
interest of the state.
  SEC. 2.  Section 4420 of the Government Code is amended to read:
   4420.  (a) No state or local governmental agency and no person
acting on behalf of any state or local governmental agency, except a
governmental agency created pursuant to agreement or compact with
another state, shall, with respect to any public building or
construction contract that is about to be or that has been
competitively bid, require the bidder to make application to, furnish
financial data to, or obtain or procure any surety bond or contract
of insurance specified in connection with the contract or specified
by any law, ordinance, or regulation from, a particular surety or
insurance company, agent, or broker.
   (b) Notwithstanding subdivision (a), a state or local governmental
agency may use owner-controlled or wrap-up insurance with regard to
a construction or renovation program for which the total cost exceeds
fifty million dollars ($50,000,000) if the agency meets all of the
following conditions and certifies that it has made the following
determinations:
   (1) Prospective bidders, including contractors and subcontractors,
meet minimum occupational safety and health qualifications
established to bid on the project.  The evaluation of prospective
bidders shall be based on consideration of the following factors:
   (A) Serious and willful violations of Part 1 (commencing with
Section 6300) of Division 5 of the Labor Code, by a contractor or
subcontractor during the past five-year period.
   (B) The contractor's or subcontractor's workers' compensation
experience modification factor.
   (C) A contractor's or subcontractor's injury prevention program
instituted pursuant to Section 3201.5 or 6401.7 of the Labor Code.
   (2) The use of owner-controlled or wrap-up insurance will minimize
the expenditure of public funds on the project in conjunction with
the exercise of appropriate risk management.
   (3) The program maintains completed operation coverage for a term
for which the Insurance Commissioner has determined that coverage is
reasonably commercially available, but in no event less than three
years.
   (4) Bid specifications clearly specify for all bidders the
insurance coverage provided under the program and minimum safety
requirements that must be met.
   (5) The program does not prohibit a contractor or subcontractor
from purchasing any additional insurance coverage that a contractor
or subcontractor believes is necessary to protect from any liability
arising out of the contract.
   (6) The program does not include surety insurance.
   (c) Safety requirements for a project subject to this section may
be developed jointly between the agency and the prime contractor.  If
the agency requires a safety program different than the prime
contractor's usual and customary program, the program shall be
mutually agreed upon, taking into account the prime contractor's
experience, expertise, existing labor agreements relating to safety
issues, and any unique safety issues relating to the project.
   (d) This section shall not affect any provision in a collective
bargaining agreement specified in Section 3201.5 of the Labor Code
that is submitted by the prime contractor with its construction bid.

   (e) The use of owner-controlled or wrap-up insurance under this
chapter does not abrogate, limit, or otherwise affect any potential
liability that is otherwise available at law.
   (f) For purposes of this section, the following terms have the
following meanings:
   (1) "Owner-controlled or wrap-up insurance" means a series of
insurance policies issued to cover all of the contractors and
subcontractors on a given project for purposes of general liability
and workers' compensation.
   (2) "State governmental agency" means any state office, officer,
department, division, bureau, board, commission, the University of
California, or the California State University.
   (3) "Local governmental agency" means any city, county, city and
county, special district, authority, or other political subdivision
of or within the state.
